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Shares of Smart & Final St Rank the Highest in Terms of Debt to EBITDA Ratio in the Food Retail Industry (SFS, IMKTA, SVU, KR, CASY)

By Shiri Gupta

Below are the three companies in the Food Retail industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.

Smart & Final St ranks highest with a a debt to EBITDA ratio of 5.1. Following is Ingles Markets-A with a a debt to EBITDA ratio of 3.8. Supervalu Inc ranks third highest with a a debt to EBITDA ratio of 3.2.

Kroger Co follows with a a debt to EBITDA ratio of 2.6, and Casey'S General rounds out the top five with a a debt to EBITDA ratio of 1.8.

SmarTrend recommended that its subscribers protect gains by selling shares of Ingles Markets-A on May 4th, 2017 by issuing a Downtrend alert when the shares were trading at $42.95. Since that call, shares of Ingles Markets-A have fallen 48.4%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest debt to ebitda ratio smart & final st ingles markets-a supervalu inc kroger co casey's general

Ticker(s): SFS IMKTA SVU KR CASY